Keller has never had any experience in the audit on this industry before. Smackey Dog Foods started in a family kitchen‚ experienced explosive growth‚ and have had some troubles handling the accounting side of the business. The auditor identifies that main purpose of Smackey Dog Food to obtain an audit report is to fulfill the bank requirement of additional loan for $150‚000 on top of the company’s current existing bank loan for $150‚000. Under audit planning‚ the auditor decides whether to accept
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did not advise Enron’s audit committee that their CFO and his colleagues were involved in significant conflict if interest situations. They did not advise Enron’s Audit Committee about the inadequacy of their policies and internal controls. Also‚ many of the transactions between Enron and the SPEs were not in the interest of the Enron shareholders. As well as‚ AA didn’t consider the advice of it quality control partner. Also‚ Arthur Andersen did not find significant audit evidence and/or didn’t
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to keep accurate and precise working papers for an audit‚ it is also important for auditors to keep accurate and precise records of their time spent on the tasks associated with an audit. “When accountants complete work without recording it as chargeable time‚ potential revenue can be lost and erroneous planning and poor personnel decisions can result.” (Lightner‚ et. al.‚ 1983) Hamilton Wong is one of six accountants assigned to the audit of Wille and Lomax‚ Inc.‚ a public company which sells
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2014 “Olympus Scandal” The Olympus Corporation scandal is one of the biggest scandal’s to break. Olympus Corporation‚ the Japanese maker of cameras and medical imaging equipment is a huge corporation that lasted over two decades. 1- Analyze the audit report that the CPA firm issued. Ascertain the legal liability to third parties who relied on financial statements under both common and federal securities laws. Justify your response. It turns out that Olympus tried to make an effort to make the company’s
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extreme measures to conceal the fraud from his company’s audit committee and independent auditors. Despite those measures‚ the independent auditors identified suspicious entries in the company’s accounting records that were a result of the CFO’s fraudulent scheme but did not properly investigate those items. Shortly before the fraud was publicly revealed‚ a partner of the company’s audit firm instructed his subordinates to alter prior year audit workpapers for the client to conceal improper decisions
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Under the old system‚ commissions were a fixed percentage of dollar sales. The new system is considerably more complex‚ with commission rates yarying according to the product sold and the total dollar volume of sales. Jason Scott was assigned to use audit software to write a parallel simulation test program to calculate sales commissions and compare them with those generated by the new system. Jason obtained the necessary payroll system documentation and the details on the new sales commission policy
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Universityof Rochester I. INTRODUCTION RXecent developments in the theory of the firm emphasize the importance of monitoring the performance of parties to the firm.1 Jensen and Meckling2 hypothesize that an audit is one type of monitoring activity that increases the value of the firm. An audit by someone independent of the manager reduces the incentive problems that arise when the firm manager does not own
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A & A U standards setting C C O U N T I N G D I T I N G Disclosure of the Engagement Partner in the Audit Report An International Perspective on the PCAOB Proposal By Jason Bergner and Ling Lin O n December 4‚ 2013‚ the PCAOB conducted an open meeting to reconsider its proposal to require the disclosure of the engagement partner (and certain other participants) in the audit report‚ as part of its efforts to improve transparency. The PCAOB is carefully considering the likely costs and benefits
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HW & KH Winter 2014 MGAD10 Case Assignment 1 Case Question You‚ CPA‚ CA/CGA/CMA‚ are an auditor at a large public accounting firm. Shortly after receiving your professional designation‚ you were approached by the President of your Provincial Institute about joining the Professional Conduct Committee (PCC) as a volunteer investigator. The PCC is responsible for investigating potential breaches of the rules that govern the conduct for auditors of financial statements (i.e. Rules of Professional
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DATE: Sept 14‚ 2014 TO: Edward Sloane‚ Senior Audit Partner FROM: XXXX‚ CPA‚ CGA Subject: I have been auditing Vehicles For Hope Limited (VHL) for the last five years‚ however during my recent meeting with the accountant I was informed of several changes that have taken place during the last one year. I am writing this memo to apprise you of these changes and seek your feedback on audit planning. Significant Donations: Two months ago a long standing board
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